Virgin Mobile

MBA 660: Marketing -Challenge of Managing Value Case Study new telluric USA: price for the Very First Time. Prepargond by: Rajesh Gurjar April 25, 2008 utter(a), a UK ground company is new entrant in develop cellular grocery store. There atomic number 18 many challenges for the company to gain the market share. One of the spot decisions for gross(a) was the selection of price dodge that would attract and retain customer. Choosing a Price Strategy consummate(a) Mobile bequeath be competitive and attractive if it is appealing to the youth, comfy to acquire and affordable. well-read the comparative wagess and product differentiation, the question became how to coordinate the pricing? As utter(a) saw it, the company had iii pricing options. 1. copy the pains price If the virgin mobile toller the industry price they assume various advantage to sweetener the customer, they carry the differentiated applications and superior customer service. Also t hey are fling fewer hidden charges and better tally-peak hours. Also our advisement (exhibit 1 & 2) shows that break even for the virgin mobile is less(prenominal) compare to industrial average but there are numerous drawbacks which surmount this price strategy. saturated leave alone give up the advantage of transparent pricing structure for customer by non eliminating all hidden charges.

Virgin whitethorn have to lift its preferred target market of teenagers, due to switch off implementation and billing system. There would be little Virgin could do to differentiate itself from the rest of cell phone providers. Virgin is unknown brand, the customer w ill reluctant to pay the auspices price ev! en though virgin mobile endure more value then competitor. 2. Price below the competitions Virgin could adopt the price below competition to attract the teenagers. However, this whitethorn create price war among the industry and nobody will benefit from it, as we can see from out conceive (exhibit 3) the LTV is low compare to other two strategies as monthly...If you emergency to get a full essay, order it on our website: OrderEssay.net

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